INSUBCONTINENT EXCLUSIVE:
MUMBAI: The stock market extended its quiet ascent with the Sensex reclaiming the 35,000 mark and the Nifty mounting 10,700 for the first
time in three months, mirroring strength in Asian equities after geopolitical tensions in the Korean peninsula receded.
Continued flows from
domestic institutions, mainly mutual funds, and absence of major foreign fund selling in the last one month have helped the benchmark
indices erase bulk of their losses in February and March.
The Sensex rose 190.66 points, or 0.55%, to close at 35,160.36
The NSE Nifty gained 47.05 points, or 0.44%, to end at 10,739.35
Both indices posted their biggest monthly gains in April since March 2016
Financial markets will be shut on Tuesday on account of Maharashtra Day.
Technology shares led gains with the NSE IT index rising 1.4% on
chief executive officer, Zerodha, a broking firm.
Other market participants say a decline in foreign institutional selling has also lifted
the sentiment.
Mutual funds bought shares worth ?12,300 crore since March 23, while foreign institutions have net sold to the tune of ?2,340
On Monday, foreign portfolio investors sold shares worth ?385 crore and domestic institutions pumped ?262 crore into the market.
The pace of
Soon, the rise in global bond yields and geopolitical tensions between US and North Korea dented investor sentiment, sparking outflows from
emerging markets.
In India, many mid- and smallcap shares lost 30-50% in February and March, causing several retail investors to flee the
market.
The Sensex and the Nifty rebounded from the lows but investors are still skeptical because many mid- and small-cap shares are yet to
HDFC, TCS and Reliance Industries contributed the most to the bounce in the Sensex and the Nifty in the last one month.
Investors are now
awaiting the Karnataka election results on May 15
